(Bloomberg) — Eyewear retailer Warby Parker Inc. opened trading at $54.05 a share, giving the company a market value of about $6 billion in the second direct listing of the week.
The shares rose as high as $54.72 in New York trading. That compared with the $40 a share reference price assigned by the New York Stock Exchange. Unlike the sale price in an initial public offering, the reference price serves merely as a guide for investors and allows trading to begin.
The opening price more than doubled the $24.53 at which shares changed hands in private trades in April, as detailed in Warby Parker’s filings with the U.S. Securities and Exchange Commission. Accounting for stock options and similar holdings, the company’s fully diluted value is closer to $6.6 billion.
Warby Parker’s debut comes on the heels of data analytics firm Amplitude Inc. rising 9.6% in its direct listing Tuesday.
The two were the fifth and sixth major direct listings on U.S. exchanges this year, following the likes of cryptocurrency exchange Coinbase Global Inc. and online game maker Roblox Corp. As with previous direct listings, Warby Parker didn’t issue new shares as it would in a traditional IPO and its investors don’t have to wait for a lockup period to sell shares.
Advocates for direct listings contend the option is a better deal for startups and their investors than IPOs, which require underwriting fees and come with expectations of a first-day share pop.
Tiger, D1
Warby Parker counts Tiger Global Management, T. Rowe Price, General Catalyst, D1 Capital Partners and Durable Capital among its largest investors, according to its filings.
The eyewear maker got its start as digital platform and has been expanding its offline footprint. It had a net loss of $7.3 million on revenue of $271 million in the first six months of the year, compared with a net loss of $10 million on revenue of $177 million during the same period in 2020.
While e-commerce accounted for only 8% of eyewear sales in the U.S. last year, the increasing use of smartphones, tablets and computers is contributing to customer growth within the market, Warby Parker said in its filings. Some 76% of adults in the U.S. now use some form of vision correction, according to statistics cited by the company.
Warby Parker is a public benefit corporation, giving it a mandate to focus on more than maximizing shareholder returns. Working with nonprofit organizations, it channels donations of glasses to people in more than 50 countries.
While banks don’t underwrite shares in a direct listing as they do in an IPO, Goldman Sachs Group Inc., Morgan Stanley and Allen & Co. have been advising Warby Parker on its listing. The shares are trading on the NYSE under the symbol WRBY.
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